Different Types Of Subscription Models
In the next five to 10 years, vehicle-subscription programs could make up nearly 10 percent of all new vehicles sales in the U.S. and Europe. On top of that, more than 16 million vehicles in the U.S. and Europe could be part of subscription services by 2025.
Click on the red labels to see different types of subscription models, which are based on real-world examples
Source: Sarwant Singh, "Your Next Car Could Be A Flexible Subscription Model," Forbes, July 30, 2018, forbes.com
Mainstream automaker
Super luxury automaker
Electric vehicles
Used car
Dealer-led programs
Software providers
Technology companies
Insurance companies
Other forms of transport
Other forms of transport:
Can cost anywhere from $1 per unlock (for scooters) to $300 per month (for high-end bicycles). Some services offer delivery.
Insurance companies:
Traditional, longer-term leasing model. Fees start at $600 per month.
Technology companies:
Flexible leasing model in which all vehicles are available and can be traded in anytime. Fees range from $1,000 to $1,499 per month.
Software providers:
Short-term vehicle leasing, plus subscription and mileage fees. Fees start at $329 per month.
Dealer-led programs:
Flexible leasing model where the vehicle is delivered and
can be exchanged anytime. Fees range from $1,000 to $1,500 per month.
Used cars:
Short-term vehicle leasing. Fees start at $200 per week.
Electric vehicles:
Short-term vehicle leasing offering only pre-owned electric vehicles. Fees range from around $400 to $624 per month.
Mainstream automaker: Traditional, medium-term vehicle leasing. Fees start at $400 per month.
Super luxury automaker:
Open-ended subscription model with a 31-day minimum commitment. Fees range from $2,000 to $3,000 per month.